Travelers Tops Q1 Estimates On Strong Premium Growth, Profit Hit By Wildfire Losses

Travelers Companies, Inc. TRV shares were trading higher in the premarket session on Wednesday as sales of $11.81 billion (+5% year over year) outpaced the analyst consensus estimate of $10.81 billion.

The company reported first-quarter adjusted EPS of $1.91, beating the street view of $0.80.

Due to higher catastrophe losses, core income decreased 60% Y/Y to $443 million.

Also Read: Travelers Companies’ Scale And Analytical Advantages Make It Attractive, Analyst Says

In particular, the company witnessed catastrophe losses of $2.266 billion pre-tax, owing to the California wildfires in January 2025.

Net realized investment losses stood at $61 million pre-tax ($48 million after-tax), compared to gains of $35 million pre-tax ($27 million after-tax) in the prior year quarter.

Net written premiums rose 3% Y/Y to $10.515 billion in the quarter under review.

In particular, Business Insurance net written premiums rose 2% Y/Y to a record $5.7 billion, despite a 4-point drag from the enhanced casualty reinsurance program booked upfront.

Bond & Specialty Insurance segment net premiums growth of 6% Y/Y to $1.0 billion, driven by 89% retention in management liability and 13% growth in the surety segment.

Personal Insurance segment net premiums grew 5% Y/Y to $3.8 billion, supported by solid renewal premium growth, especially in Homeowners.

Net investment income increased 10% Y/Y pre-tax in the quarter. Adjusted book value per share by 11% Y/Y to $138.99 in the quarter.

Buyback: The company repurchased 1.4 million shares during the quarter at an average price of $252.68 per share for a total cost of $358 million.

As of March 31, 2025, the company had $4.790 billion of capacity under its share repurchase authorizations.

Dividend: The company declared a regular quarterly dividend increase of 5% to $1.10 per share.

The dividend is payable on June 30, 2025, to shareholders of record at the close of business on June 10, 2025.

Alan Schnitzer, chairman and CEO said, “Our trailing twelve-month core return on equity of 14.5% reflects the strong momentum we have at our backs as we benefit from investments we have made over a number of years.”

Investors can gain exposure to the stock via Invesco KBW Property & Casualty Insurance ETF KBWP and iShares U.S. Insurance ETF IAK.

Price Action: TRV shares are trading higher by 2.14% to $255.00 premarket at the last check on Wednesday.

Read Next: